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Docusign CEO Attributes Stock Gains To Work-From-Home Reality

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Docusign CEO Attributes Stock Gains To Work-From-Home Reality

Docusign Inc (NASDAQ: DOCU) is among the few strocks trading higher for 2020, and the company is benefiting from the work-from-home trend, CEO Dan Springer said Tuesday on CNBC's "Fast Money."

DocuSign's Headwinds, Tailwinds 

DocuSign is able to satisfy companies' needs to sign contracts and agreements digitally, but at the same time the company recognizes potential headwinds from economic risks, Springer said.

This will naturally have a negative impact on not just DocuSign, but nearly every company, the CEO said. 

Nevertheless, the tailwinds from the stay-at-home economy offset the negative headwinds, and the company "still feels pretty good about how business is going," he said.

DocuSign showed 39% revenue growth and 38% billing growth, and this could be considered a good model for future growth, Springer said. 

DocuSign 'A Trust Brand' 

DocuSign is able to better promote itself to its 600,000 clients as being more than a mere digital signature company, the CEO said.

Clients have come to embrace the DocuSign Agreement Cloud, which is a portfolio of applications for preparing, signing, acting on and managing agreements, he said. 

"DocuSign is a trust brand," Springer said. "We make a huge focus on telling our customers they can count on us both from a security standpoint and availability standpoint."

Finerman Says DocuSign Shares 'Not Cheap'

DocuSign's stock is "not cheap," and it is not clear if the economy returns to its previous normal whether its valuation will "come in," "Fast Money" trader Karen Finerman said after the interview. 

From a products and usefulness point of view, Finerman said she "really likes it a lot."

The stock was down 1.66% at $86.51 at the time of publication Wednesday.

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